Egypt: New tax laws regarding compliance, incentives, and procedures
Effective February 13, 2025
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August 27, 2025
Three new tax laws were published in the Official Gazette on February 12, 2025, and became effective on February 13, 2025. The laws are aimed at facilitating tax compliance, providing incentives to small enterprises, and amending tax procedures.
- Law No. 5 of 2025 provides mechanisms for the settlement of the status of certain taxpayers and those responsible for value added tax (VAT) purposes. The law grants waivers of tax audits for income tax, VAT, stamp duty, and the state’s financial resources development fee for tax periods ending prior to February 13, 2025, provided no procedures have been initiated by the tax authority and registration was completed by August 12, 2025.
- Law No. 6 of 2025 introduces tax incentives and facilities for enterprises with annual turnover not exceeding EGP 20 million.
- Law No. 7 of 2025 amends certain provisions of the Uniform Tax Procedure Law (Law No. 206 of 2020). It caps delay fines or additional tax at 100% of the original tax amount for years preceding or following the law’s effective date.
Read a July 2025 report (10 pages) prepared by the KPMG member firm in Egypt